The rumor mills have put to an end after the roll out of the most awaited reform GST. Even the BSE Sensex has showed a green signal by rising above 30,000 level and Nifty up by 84.07 points. Here’s a reality check for GST devotees and distractors.
Investor Confidence with GST and India’s Growth Story
The launch of GST has not only plastered the smile on the face of chief ministers, cabinet ministers but investors alike. Yes! Sensex has plunged to 31,000 points at the start of Monday hinting towards the happy days ahead. Though a few stocks plummeted down owing to certain industry specific reasons, it is believed this game changing reform has created a new boom in the market. Earlier, there were tremors how the market will respond to it. Now there is a sigh of relief. The markets have shown a positive signal on Monday indicating that the first trading session under the GST regime is success. Nifty was up by 84.07 points, giving a belief that best is yet to come. Further, the experts believe that initial days will be full of turmoil till the time GST creeps in our daily regime.
Not only the Indian markets have raised the hopes, but foreign markets are also signaling the same. Here’s an overview about the same. Hong Kong share market Hang Seng ended up on a positive note (up by 0.08 percent), Japan Nikkei rose to 0.13 percent and US Dow Jones Industrial Average ended a notch higher than Friday.
Even the apex body for facilitating international trade, IMF has supported this reform and forecasted India’s growth rate to peg up over 8 percent, thus putting an end to GST distractors. The government efforts to scale back corruption and put financial regulation in place has created positive sentiment across the world.
What does it indicate?
The breeding positive sentiment across our nation and abroad is signaling that India has a bright future ahead. Moreover, the need of GST has been felt because the current tax structure doesn’t support investments from indigenous manufacturers and it is too complex to understand. Thus, making India left behind on the list of best countries for doing business. Further, it will pave a way towards the stable and transparent way of doing business.
Well, we understand that people are still hesitant and are criticizing the biggest reform. Hence, the all powerful GST council has decided to review it to understand the glitches that people may face. Also, they will take various steps to create awareness about the new taxation system.
Finally, it seems India’s tryst with the most talked about reform GST has finally ended on a positive note. Don’t you believe?